• Typical Investment Process - New Issue High-Yield CMBS

    Deal Selection
    • Strong relationships with CMBS issuers
    • Negotiated transactions
    • Limited number of buyers for below investment grade CMBS
    Due Diligence
    • Employ a “ground up” approach
    • Review each asset utilizing localized real estate knowledge
    • Site inspect each asset and review competitive assets in its submarket
    • Prepare cash flow forecast for every asset
    • Assess viability of cash flow to meet debt service and terminal value to retire principal
    • Ability to underwrite large portfolios effectively
    Protect Downside
    • Remove loans with outsized loss risk
    • Stress default scenarios to test yield
    • Credit culture focuses on return of principal
    • Invest in new issue CMBS where Eightfold can act as controlling class representative
    • Principals have been at the forefront of special servicing since 1993
    • Ability to direct workouts to maximize recoveries on defaulted loans
    Strategic Relationships
    • Special Servicers
    • Property Owners
    • Brokers

    The investment process entails a great deal of complexity, which limits competition and fosters an inefficient pricing environment.

Eightfold Real Estate Capital, L.P.